DST™ An Altrnative to a 1031 Exchange

The DST™ is an Alternative to a 1031 Exchange

 

When deciding to sell a business, real estate or any highly appreciated asset; the capital gains taxes may stop your from proceeding. For an owner who does not want to continue operating or owning their business, a Deferred Sales Trust™may be the answer. IRC 453 of the IRS Tax Code is used by the Estate Planning Team for the Deferred Sales Trust™. The DST™ provides Sellers with a solution whereby they can defer capital gains upon the sale of their asset.

One options is to go ahead to closing and pay the taxes. Taxes on the sale of a highly appreciated asset can be so large as to stop a transaction in it's tracks.

Another option is a tax strategy called a 1031 Exchange and is also part of the IRS Tax Code. This involves exchanging one real estate asset for another and passing the taxes on to the next property.

There are serveral problems that can arises in this stragety for the Selller. The exchange must meet several strict deadlines after the first closing or the transaction is taxed. And finding a suitable property, that the Seller will buy, can have many hurtles.

The DST™  is an alternative and does not have IRS deadlines that the seller must meet to defer the taxes. The Seller is not requiured to exchange into real estate to defer their taxes. Sellers who are partners can go their seperate ways with a DST™.

To find out the contrasting benefits, risks and costs of a DST™ compared to a 1031 Exchange call our office for a no obligation conference call with our Team.

Click this link to my DST™ web site for FAQ and request info.https://mydstplan.com/ZWF